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RAEC asked for tax incentives for “Vkontakte” and “Yandex”

admin by admin
October 14, 2020
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RAEC asked for tax incentives for “Vkontakte” and “Yandex”
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RAEC asked for tax incentives for “Vkontakte” and “Yandex”Anna Saveleva | 14.10.2020

РАЭК попросил налоговые льготы для «ВКонтакте» и «Яндекса»

The business believes that the spread of the tax maneuver on the company’s “digital circuit” will help not to lose to foreign competitors and retain talent.

As reported by RBC with reference to the final resolution of the Russian Internet forum 2020, RAEC
(The Russian Association of electronic communications) proposes to extend the tax maneuver in the it companies providing
digital services, regardless of their size. These include search services, social networking, online cinema, online shopping, etc. — that is, those who do not fit the criterion of “90% of revenue
account for the development and sale of SOFTWARE.”

Support can’t get developers cash and Bank software, electronic document management systems, CRM and those who develop the software, but earn more on other services. Under
this description is suitable for such famous companies as “Yandex.Taxi”, BlaBlaCar, Avito, “Citymobil”, SkyEng, “Contour”, “Shtrikh-M”, “Motor” and “Deadoc”.

However, the Association has proposed to delay the introduction of labeling of goods and other new digital systems, as well as mandatory pre-domestic, until January 1, 2022; to recognize
the software, developed jointly with foreign shareholders in the territory of the Russian Federation; to extend the zero rate of VAT on mobile phones and to establish a uniform VAT rate on electronic
services to 10%.

Thus, according to RAEC, will avoid reduction of this segment of the market and players care, which subsequently will be difficult to replace because of a “weak willingness of investors to investments.”
In other words, measures will help prevent the capture of the market by foreign companies and move staff to them.

taxation Russian it companies

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